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Phenix Corporation reports following information regarding its sales and cost of sales. Draw the estimated line of cost behavior by using the scatter diagram, and evaluate fixed costs and variable costs per unit sold. Then use the high-low method to estimate the fixed and variable components of the cost of sales.
Period Units Sold Cost of Sales Period Units Sold Cost of Sales1 0 $2,500 6 2,000 5,5002 400 3,100 7 2,400 6,1003 800 3,700 8 2,800 6,7004 1,200 4,300 9 3,200 7,3005 1,600 4,900 10 3,600 7,900
Donnie has made a 20 percent gross margin on his sales. Donnie thinks there may be some problem with the inventory. Evaluate the situation based on the historical gross profit
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This is a case study that relates to Strategic Management Accounting and it is about Permaclean which is a domestic cleaning materials manufacturer. Permaclean increased its
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